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October 7, 2008 6:07:08 AM CDT

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Trib Deal Could Come Undone

Posted Aug 20, 07 3:21 PM CDT in US,  Business 

(Newser) – The Tribune Company’s shareholders are meeting tomorrow to approve Sam Zell’s $8.2 billion takeover, but whispers persist on Wall Street that the deal will crumble. A disappointing stock price, concerns about the fading newspaper business, and a sagging credit market have convinced some analysts that Zell’s offer of $34 a share will be lowered to ease the company’s debt.

The New York Times outlines three possibilities for Tribune: proceed with the deal as planned (leaving the company with serious debt), cancel the deal (forfeiting tax benefits), or renegotiate the price (facing higher interest charges). Before any deal is finalized, the company must clear several hurdles, including financial tests and FCC approval.

Source New York Times

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The Tribune Tower in Chicago is seen lit up in this Nov. 16, 2005, file photo. The Tribune Co. remained silent Sunday, April 1, 2007, as its board of directors reportedly met to vote on competing buyout...   (Associated Press)
Billionaire real estate investor Sam Zell answers a question during an interview in Chicago in this March 20, 2007 file photo. Sam Zell was viewed as a savior in some quarters last spring when he swooped...   (Associated Press)
Lifelong Chicago Cubs fan Jerry Pritikin joins the faithful on opening day outside Wrigley Field which is up for possible sale along with the Cubs as a result of the deal for Tribune Company to be acquired...   (Associated Press)
Flags wave along the Michigan Ave. Bridge outside the Chicago Tribune Tower in a Chicago file photo from April 12, 2006. Sam Zell was viewed as a savior in some quarters last spring when he swooped in...   (Associated Press)
The back of a Chicago Tribune newspaper deliver truck is seen in Chicago, Wednesday, July 25, 2007. Tribune Co., parent of the Chicago Tribune, Los Angeles Times and Chicago Cubs, said Wednesday, July...   (Associated Press)
The coin slot on a Chicago Tribune newspaper box in seen in Chicago, in this April 17, 2007 file photo. Weekday circulation at U.S. daily newspapers fell 2.1 percent in the latest six-month reporting...   (Associated Press)
Billionaire investor Sam Zell, who secured a deal this month to take Tribune Co., the nation's second-largest newspaper publisher, private in an $8.2 billion deal, talks in his Chicago office in this...   (Associated Press)
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Wall Street  • Chicago Cubs  • acquisitions  • buyout  • Tribune Company  • Sam Zell  • takeover  • Los Angeles Times  • Newsday  • New York Times Company


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